China Equity Performs Best

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    Seventeen of the 42 fund indices increased during April, including seven that increased by two per cent or more, says Morningstar’s April 2015 preliminary performance report. However, three of the fund indices that lost ground decreased by more than two per cent. Funds in the Greater China equity category were the best performers as the fund index that tracks this category increased by 9.5 per cent in April. Both the Shanghai and Hong Kong stock markets posted double-digit gains for the month, but a strengthening Canadian dollar versus major Asian currencies mitigated the effect for Canadian investors. Energy sector funds had their best monthly return of the past year with a 7.4 per cent increase while Canadian equity funds posted an aggregate increase of 1.7 per cent in April, underperforming the S&P/TSX Composite Index’s 2.4 per cent gain for the month. The worst-performing fund indices were the ones that track the U.S. equity and U.S. small/mid cap equity categories, with decreases of 3.2 per cent and 5.1 per cent, respectively. Stock markets in the United States were flat to slightly positive, but currency effects negatively impacted these funds, as the U.S. dollar depreciated by 4.4 per cent during the month versus its Canadian counterpart.